10-1116c. Lease-purchase agreements; conditions; protest petition and election, when.
10-1116c
10-1116c. Lease-purchase agreements; conditions; protest petition and
election, when.
Any lease-purchase agreement entered into pursuant to this
act shall be subject to the following conditions:
(a) If the proposed agreement is for a term exceeding the current fiscal
year of the municipality, it shall be approved by a majority vote of all
members of the governing body.
(b) If the proposed
agreement involves the acquisition of land or
buildings by a municipality other than a county, school district or community
college, is for a term of three or more years, and provides for payments
in any year in excess of 3% of the total amount budgeted by the
municipality for expenditure during the current year, excluding debt
service, a notice thereof
specifying the purpose and the total of all payments shall be published
once each week for two consecutive weeks in a newspaper of general
circulation within such municipality. If, within 30 days
following the last
publication of such notice, a petition in opposition to
the agreement signed by not less than 5% of the qualified voters of such
municipality is filed with the appropriate county election officer, no such
agreement shall take effect unless and until the same is approved by a
majority of the qualified voters of such municipality
voting at an election thereon. Any such election
shall be called and held in accordance with the provisions of K.S.A.
10-120, and amendments thereto, or in accordance with the provisions of the
mail ballot election act.
(c) If the municipality is a county, school district or community college
and the proposed agreement involves the acquisition of land or buildings, is
for a term exceeding the current fiscal year of the municipality, and provides
for annual payments which in the aggregate exceed $100,000, the governing body
of such
municipality first shall adopt a resolution stating its intent to enter into
such
lease-purchase agreement. The resolution shall specify the total of all
payments to be made pursuant to the agreement and the purpose for which such
agreement is to be entered into. The resolution shall be published once each
week
for two consecutive weeks in a newspaper of general circulation within the
municipality. If a protest petition signed by not less than 5% of the
qualified
voters of the municipality, as determined by the vote for secretary of state at
the last general election, is filed with the appropriate county election
officer within 30 days following the last
publication of the resolution, no such agreement shall take effect unless
approved by a majority of the qualified voters of the municipality voting at an
election thereon. Any such election shall be called and held in the manner
provided by K.S.A. 10-120, and amendments thereto, or in accordance with the
provisions of the mail ballot election act. If no such protest petition is
filed within the time limitation contained herein, the governing body of the
municipality may enter into such agreement. If an election is held pursuant to
a
protest petition and a majority vote is cast in favor of the proposition, the
governing body of the municipality shall have authority to enter into such
agreement.
(d) If the proposed agreement is for a term exceeding the
current fiscal
year of the municipality, the agreement shall specify the following: (1)
The amount or capital cost required to purchase the item if paid for by
cash, (2) the annual average effective interest cost, and (3) the amount
included in the payments for service, maintenance, insurance or other
charges exclusive of the capital cost and interest cost.
History: L. 1990, ch. 74, § 3;
L. 1996, ch. 269, § 2; July 1.